Correction & Apology -- Earlier we had published that Softbank has invested $1 billion on Snapdeal, however its turned out that this news is not correct asthe anonymous source that had reported this news has misinterpreted the proceedings that had happened in this regard. Now it has came to our conclusion that Softababk has infact cancelled or written-off $1 billion of its earlier investment in Snapdeal instead of any fresh investment.
After a lot of speculations, stakeholders' discussions and rumors, Japanese internet giant SoftBank, that holds a significant minority stake in Snapdeal, has finally written-off (cancelled) around $ 1 billion of its invested amount in the company.
Interestingly, it was also speculated that Softbank will invest $1 Billion in Paytm and Snapdeal would merge either With Flipkart or PayTM Mall but the this twist in this news comes at a time when Softbank is in almost of final stages of negotiations to sell Snapdeal to Flipkart. According to sources, a board meeting was held at SoftBank earlier this week to debate on the proposed transaction and come to the plausible consensus of decision, a person who don't want to disclose his name said.
Notably, in the earnings report for the fiscal year ended March 2017, SoftBank said it has written off about $1 billion. This was primarily due to the loss on valuation of shares of subsidiaries and associates including Starfish I Pte Ltd, which holds shares in the privately-held Jasper Infotech, which runs Snapdeal.
When we tried to contact the Softbank official, we haven't got any any response til the time of writing this article.
"The valuation of our financial investments is frequently adjusted upwards or downwards due to accounting policies, currency fluctuations and market dynamics. The loss reported in today's earnings represents the aggregate impact of such revaluations during the course of the entire fiscal year", said a SoftBank spokesperson.
Snapdeal and Ola are Softbank’s flagship investments in India.
Incidentally, Softbank has just marked down its valuation in cab aggregator Ola, run by ANI Technologies Pvt. Ltd. In fact, together in both the startup unicorns, the Japanese investor said, it has incurred a loss of Yen 160,419 million ($ 1.4 billion) from financial instruments at fair value.
This is not the first time when the Japanese investor has reduced the value of some of the startups it has invested in. In February 2017, SoftBank had decreased in value by 39,281 million yen ($350 million) in both Snapdeal and Ola in the nine months ended December 31, 2016.
After a lot of speculations, stakeholders' discussions and rumors, Japanese internet giant SoftBank, that holds a significant minority stake in Snapdeal, has finally written-off (cancelled) around $ 1 billion of its invested amount in the company.
Interestingly, it was also speculated that Softbank will invest $1 Billion in Paytm and Snapdeal would merge either With Flipkart or PayTM Mall but the this twist in this news comes at a time when Softbank is in almost of final stages of negotiations to sell Snapdeal to Flipkart. According to sources, a board meeting was held at SoftBank earlier this week to debate on the proposed transaction and come to the plausible consensus of decision, a person who don't want to disclose his name said.
Notably, in the earnings report for the fiscal year ended March 2017, SoftBank said it has written off about $1 billion. This was primarily due to the loss on valuation of shares of subsidiaries and associates including Starfish I Pte Ltd, which holds shares in the privately-held Jasper Infotech, which runs Snapdeal.
When we tried to contact the Softbank official, we haven't got any any response til the time of writing this article.
"The valuation of our financial investments is frequently adjusted upwards or downwards due to accounting policies, currency fluctuations and market dynamics. The loss reported in today's earnings represents the aggregate impact of such revaluations during the course of the entire fiscal year", said a SoftBank spokesperson.
Snapdeal and Ola are Softbank’s flagship investments in India.
Incidentally, Softbank has just marked down its valuation in cab aggregator Ola, run by ANI Technologies Pvt. Ltd. In fact, together in both the startup unicorns, the Japanese investor said, it has incurred a loss of Yen 160,419 million ($ 1.4 billion) from financial instruments at fair value.
This is not the first time when the Japanese investor has reduced the value of some of the startups it has invested in. In February 2017, SoftBank had decreased in value by 39,281 million yen ($350 million) in both Snapdeal and Ola in the nine months ended December 31, 2016.
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